Legality of Government CAIVRS after Discharge

[smjkaufmann]

I had a discharge chapter 7 in 2004 but my wife did not file and remained liable FHA mortgage. Payments continued until 2008 when she became sick and no-longer could work. She filed in 2008 and also recieved chapter 7 discharge.

When the payments stopped due to her issues, the FHA reported me as defaulting on the mortgage in the Federal CAIVRS system.

The CAIVRS system is a method to prescreen applicants for new government loans, loan insurance, or loan quarantees, to determine if a applicant is deliquent on any federal debt. (Key I see is applicant deliquent).

Since the discharge in 2004, I am not liable for the debt and can not be deliquent on such debt so is it legal under the bankruptcy laws to report a person as deliquent that has no liablity to the debt?

I am be looking for a lawyer to address this issue as it seems to violate the bankruptcy laws as the other purpose of the CAIVRS system is to help the government recover debt owed, being reported in the system has the implication that the individual owes the debt even though they are removed from the liability of the debt by the discharge order.

Any one want to comment on this?

Steve

[smjkaufmann]

Federal determination on deliquency

Just another note,

The treasury department as define when a person is in deliquent status and not in deliquent status under Title 31 CFR 285.13(d) and states in (d)(2)(ii) that a debtor is not in deliquent status if discharged in bankruptcy.

[BassBoy]

You would be right. The default should not be reported.